UniTek Files For Chapter 11

UniTek Global Services, a provider of installation, fulfillment and infrastructure services to telcos, cable operators and wireless service providers, has filed a voluntary, prepackaged Chapter 11 bankruptcy reorganization.

Blue Bell, Pa.-based  UniTek announced Monday that it had secured the support of all of its lenders, including Littlejohn & Co. and New Mountain Capital, among others, collectively representing 100% of its secured debt for its previously announced prepackaged restructuring Plan.

UniTek listed assets of $3.2 million and debut of $186 million in documents filed with the U.S. Bankruptcy Court in Wilmington, Del., according to Bloomberg

UniTek’s customers include DirecTV (via its DirectSat subsidiary), and to cable operators such as Comcast, Charter Communications and Time Warner Cable via its FTS USA LLC unit, which operates primarily in the eastern and southern U.S. Its Ontario, Canada-based Wirecomm Systems division provides installation and fulfillment services to Rogers Communications, with Pinnacle Wireless USA

UniTek said it expects to keep the company operating during the bankruptcy process.

Under terms of the restructuring plan, 40% of the company’s existing term debt will be exchanged for equity in the company, as well as a substantial reduction in cash interest rate. In addition, its lenders have agreed to advance up to $43 million of new capital to support the UniTek’s recapitalization.

In May, the company posted first quarter revenues of $63.2 million, a decrease of 15% versus the year-ago quarter. It blamed the reduction on declines in both cable and satellite home installations due mainly to “weather disruptions” in the markets UniTek serves as well as “exiting certain low or negative margin cable markets.”